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Senate committee advances DEQ permit-fee overhaul projected to raise about $55 million over five years

Senate Committee on Revenue and Fiscal Affairs · April 20, 2026
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Summary

House Bill 758 to adjust DEQ permit and permanent fees was reported favorable after agency officials described program deficits and projected nearly $55 million in additional revenue over five years; senators asked about fee limits, program-specific impacts and water monitoring budgets.

House Bill 758, presented to the Senate Committee on Revenue and Fiscal Affairs on April 20, would adjust Department of Environmental Quality permit and permanent fees to better align with peer states and reduce reliance on state general fund support.

Vice Chairman Grama presented the bill on behalf of DEQ, saying the department’s last comprehensive permit-fee update occurred in 2016 and that several programs are operating at deficits. DEQ undersecretary Theresa Delafoss told senators the permit adjustments would be phased and rule‑making would follow; she said the permit changes are designed so fees more closely match workload and program needs.

Delafoss cited program-level shortfalls in the air and radiation programs, noting the radiation program is currently collecting roughly half of what is required and that proposed adjustments include larger percentage increases for those programs. DEQ’s fiscal projection presented to the committee estimated the permit adjustment would generate nearly $55,000,000 over the next five years, with an average annual increase above $13,500,000 beginning in fiscal years 2027–28.

Senators asked about statutory limits on DEQ’s charging authority; Delafoss responded that the bill prescribes fee ranges by media and ties invoices and fee amounts to workload. Senator Wheat asked which industries might be most affected; DEQ said air and radiation permits would see larger increases. Senator Wheat also asked whether the bill would change water-quality testing obligations; Delafoss said current water testing in the Office of Environmental Assessment is not scheduled to change and offered to connect senators with that office for details.

Support cards from industry stakeholders and applicants were read into the record; after discussion Senator Lambert moved that the committee report HB 758 favorable. The committee approved the motion without objection. The bill will next proceed for additional review and rulemaking steps as described by DEQ officials.

The hearing record does not include a roll-call tally; the committee took action by unanimous consent. DEQ officials committed to follow-up contacts with senators about program-specific timing and implementation details.